Gwinnett.talk

By Chuck

April 16, 2007 11:31 AM | Link to this

In the past anyone with a pulse has been granted a mortgage. When the compliance folks decide that it’s time to move the 20 people living in the garage out or to do some required maintenance, pop goes another Juan. Raising the bar for mortgages might help a bit.

By Alidina

April 16, 2007 11:56 AM | Link to this

I think another factor that maybe a factor is high property taxes in Gwinnett County. When i purchased the home, my mortgage payment was $1344, however two months later my property tax bill was adjusted so my new mortgage payment is $1,519.

By Jennifer

April 16, 2007 12:03 PM | Link to this

There are so many victims in all this. But the ones I feel sorry for are the neighbors. Responsible people who bought houses they could afford and maintain. They are left to watch their neighborhoods deteriorate, and home values drop. They have to look at the eye-sores left on their street when a foreclosure takes place. If a person can’t afford the mortgage then they can’t afford the up-keep. Mortgage brokers who make these loans are the slimiest people on earth.

By JJ

April 16, 2007 12:17 PM | Link to this

First of all, Try living within your means and paycheck. When looking for a home, go to a broker first, find out what you can afford, then go and find it.

I have owned two homes in the last 15 years. I am a single parent. Neither home has been more than $900.00/month, including PITI. And we don’t live in a dump. My second house was only $130,000, it’s a 20 year old home, in an established neighborhood, with working class people, who keep up their homes and yards. I don’t want a gated, HOA community with the pool and tennis courts. I know enough people with these ammenities, so we go to their pools during the summer.

I live in a nice neighborhood, that I can afford. When I sold the first house, I had been there for 10 years, so I had a good bit of equity built up. I took part of that equity to put down on the second house. I now have close to $40,000 in equity in 4 years with the second home.

Get a fixed rate, not an adjustable rate. Try to put at least 20% down, so you don’t have to pay mortgage insurance. DO NOT FINANCE YOUR DOWNPAYMENT IN WITH YOUR MORTGAGE. A friend of mine rolled her $30K down payment into her mortgage, and is now paying $210K for a $180K home, and cannot sell it for what she owes. She is about to loose it in foreclosure, and has only lived there less than one year.

Find a place you are comfortable with. So what if it isn’t a $300,000 home, that may be the second or third home, something to work up to. If you live within your means, and not try to keep up with the neighbors, you will be fine.

By JustMe

April 16, 2007 12:25 PM | Link to this

I do think that the rising property taxes contribute to this problem. Too many people, especially elder people on a fixed income, lose their homes because property taxes spiral out of control.

I really like what the Bay area has done to resolve this. They passed a frozen property tax law. Your property taxes are frozen at the level when you purchase the property. When you sell the property, the tax value is reset. This means that people can budget for the future without the fear of property taxes over-taking your income.

By Ms.Simon

April 16, 2007 12:38 PM | Link to this

Property taxes are doing me in also.

I live in Conyers and when I moved in my townhome, my mortgage was 724.36.

I am now paying close to $1,000 for my mortgage.

Mind you I haven’t gotten a raise on my job. When I purchased the home, I was basing my mortgage on the beginning payment, and I could afford that.

I am a single woman struggling to make it.

And yes I have a fixed mortgage.

By Bryant

April 16, 2007 12:42 PM | Link to this

The problem is the corrupt mortage industry. I had the worst experience with Provident Mortage Company. The government should pull in the reigns on mortgage companies. The issue is with all the mortgages with arms. They use “funny math” to make homes look more afordable and then once people relaize what their arms are on the mortgage it is too late. It is a national issue right now and the mortgage brokers are rolling in the money while unsuspecting home owners are left to pay the piper. It is only going to get worse. They are preying on uninformed buyers.

By JustMe

April 16, 2007 12:48 PM | Link to this

Bryant -

I need to speak up for ARM. I got an ARM a few years ago that was excellent. Even when it adjusts, it will be better than the 30 year fixed.

I agree that buyers need to be aware of what they are getting in to. However, it is “buyer beware” that should rule. The law can only do so much if there are dumb buyers out there.

An ARM is not a bad mortgage if you know how and when to use it.

By Bflogrl

April 16, 2007 1:33 PM | Link to this

I blame the people who do decide to move out of the neighborhood, rent the home or either turn it into a section 8 property, and never come back to check from time to time and see how the house or tenants are doing. My husband I I moved in our home 10 years ago, brand new subdivision, watching our kids along with the neighborhood kids grow up, and go away to college. Now we want to sell and move but its going to be hard. In the past 2 years I have watched over 10 homes in my subdivision go into foreclosure. To date, they have not sold, and this leaves us to wonder if we will be able to sell our home and move on if those same properties over the two year period have not sold yet. This leads me to the question: Do we do the same thing our past neighbors have done: move and rent our home out or turn it into section 8 like everyone else has done? Seems like a vicious cycle.

By JJ

April 16, 2007 1:47 PM | Link to this

Bflogrl Section 8 actually pays you more than your mortage. A neighbor of mine in our old s/b when Sec. 8. Her mortgage was $800/mo, and Sec. 8 paid her $1,300. She was able to make her mortgage, plus put a little aside for repairs. Section 8 GUARANTEES you receive your payment on a specific date of the month. It’s never late (according to my friend).

I came very close to going Sec 8 on my first house, but needed the equity to get into my second. I could have borrowed the equity, and paid it with the overage on the Section 8. So, I recommend it IF you want to be a (slum)landlord. Just remember, you have to make any and all repairs yourself. Also, I think the Sec 8 people have to come and inspect your property.

It is prosperous if you are in a good financial situation.

By Bflogrl

April 16, 2007 2:04 PM | Link to this

JJ, Thank you for that info. If the government folded on the section 8 deal, would it have been the Slum Landlords fault for not keeping up the property or making the repairs, not too sure on how it works. Got enough equity, low interest rate for 1st time home owner,no second mortgage, we just decided its time to go. Open for any suggestions without contributing to a neighborhood already not prospering.

By Bryant

April 16, 2007 3:44 PM | Link to this

JustMe,

I actually have a good arm on my loan, but I researched it completely. It took some digging to find it. I know many others who went blindly into it and have gotten screwed. They ended up buying more home than they could afford. My arm does have a baloon payment in ten years I may have to refinance if I haven’t paid against it. My point earlier is that it is funny math using a line of equity in your home to make the mortgage seem more affordable. I also put no money down which is where the arm came into play. I went into the entire thing knowing what I was getting into and with no true help from my mortgage broker. She was shady and vague in all her dealings. Fortunately, I had enough intelligence to research the matter myself and come to the best option for me.

By Sane one in Lilburn

April 17, 2007 2:07 AM | Link to this

Don’t twist an ARM to get an ARM I cant recall which book mentioned this advice. Ask one broker what you can afford. Take 80% of that and tell a real estate agent that is the MAX you will look for. Don’t let the agent offer to find you someone who can give you more. The point is not more but finding value in what you can afford. Proporty values might increase and expenses rise. That is why you need a larger buffer. Secondly, if you cannot afford to put at least 5% down, save more money or RENT. Lastly, two things must happen a freeze in property taxes until a house is sold and a FLAT fee for both mortgage brokers and real estate agents (similar to stock market industry).

By Duluth Homeowner

April 17, 2007 7:21 AM | Link to this

I think the main problem lies with the mortgage companies and with people not doing their research before they purchase. We qualified for much more than we could afford monthly which was rediculous. And our mortgage is an ARM, but after the first 5 years, the cap is 8% which is not bad considering rates in the 80s were 10%. Plus, we have lived in the house for a year and my payment went up $60 a month for county and city taxes. If it continues to go up $60 a month and our salaries do not, then we will have to get second jobs or a roommate. And all for the stupid taxes!

By Former Homeowner

April 17, 2007 8:57 PM | Link to this

It’s a combination of several things, but you can thank all those mortgage brokers for “doctoring” their paperwork to get the mortgages passed. No income verification, no jobs, no visa…

By Rick in Lawrenceville

April 18, 2007 8:31 AM | Link to this

As far as RISING PROPERTY TAXES…has anyone considered how much we pay in taxes to support EDUCATION FOR CHILDREN OF ILLEGAL IMMIGRANTS! The number of non-English speaking students and the cost of bilingual education in Gwinnett County primary schools is soaring. How about the cost of providing breakfast and lunches to these kids.

740 AM radio is hosting a seriers about how ILLEGAL IMMIGRANTS are overburdening our local judical systems (court calendars, interpreters, jail crowding). Danny Porter (Gwinnett DA) was interviewed and feels strongly that something must be done.

How about the cost to local governments to subsidize medical facilities like GRADY HOSPITAL in Atlanta where many illegals are receiving free medical treatment. Gwinnett county sends money to this hospital and they are still struggling to survive.

How about all the run down homes being rented by illegals. Aren’t these causing home values to deteriorate? How do you like seeing all the illegals lined up outside local businesses waiting for day labor?

How about all the local drug rings and grow houses that are being run by illegals?